What Are HR’s Top Priorities Going into 2025?

2025 is shaping up to be a transformative year for HR, where new demands call for more strategic approaches to employee engagement. Gone are the days when productivity ruled the priority list; now, there’s a louder call to focus on employee well-being, engagement, and talent strategy at its center.

This year’s State of Employee Engagement 2024/25 report captures the most pressing challenges for HR professionals as they look toward 2025. Since 2018, our annual research has gathered insights from HR leaders across the globe, each year building a clearer picture of the priorities and strategies shaping the future of work. Explore this year’s key findings to equip yourself with the insights needed to thrive in the coming year.

The Key to Well-being is a Holistic Approach

Well-being is taking center stage as the top priority this year. But it’s not about reducing burnout. Today, employers need to support employees holistically: mentally, physically, and emotionally. This shift reflects employee expectations where, according to Gallup, 62% of employees say that well-being support significantly impacts their decision to stay with an employer. The message is loud and clear: organizations that make well-being a priority in 2025 are ultimately investing in a more resilient and motivated workforce.

The New Context for Productivity: AI and Collaboration

Interestingly, we have seen productivity drop three places in the priority list. While it remains essential as a key driver for organizational performance, it’s now seen through a different lens. Cross-functional teamwork is now emerging as a critical driver to improve productivity, and advancements in AI and the automation of processes mean productivity has become more achievable through technology. This shift allows HR teams to focus on engagement and the employee experience. And it’s no surprise - recent research by The Business Dive has found AI’s potential to increase productivity by as much as 40%.

Recruitment Now Requires a Critical, Creative Focus

With 36% of HR leaders citing recruitment as their biggest concern, it ranks third on the priority list this year. But the approach to recruitment has shifted from last year. No longer is it about just sourcing the right talent; organizations must now adopt more creative approaches to remain competitive, especially as the battle for top talent has intensified. The shift to “culture add” over “culture fit” brings inclusivity and innovation to the forefront, while AI-powered tools help streamline hiring practices, allowing HR to build dynamic teams, even in highly competitive markets.

Retention Strategies Have Shifted, But They Still Remain Vital

Retention, while lower on the priorities list this year, remains essential for building a stable workforce. But this time, it’s the expectations of Millennials and Gen Z–who now represent 50% of the workforce, according to Visual Capitalist–that are reshaping how organizations need to approach retention. Generic perks are no longer enough; it’s about genuinely wanting to understand what today’s employees value, from development opportunities, all the way to work-life balance. Now more than ever, engagement needs to resonate across generations to build a truly committed team.

These key findings are just the beginning. For deeper insights into the priorities and trends shaping HR in 2025, download your free copy of the State of Employee Engagement 2024/25.